On 15 August 2018 the Government issued Decree No. 107/2018/NĐ-CP on export rise. The Decree will take effect from 01 October 2018.
Accordingly, traders engaged in rice export business must regularly maintain a minimum reserve level equivalent to 5% of the volume of rice that traders have exported in the previous six months, down 5% compared to current regulations.
In addition, the Decree specifies the conditions of traders in the rice export business, as follows:
– Having at least 01 specialized store for storing paddy and rice in conformity with national standards and technical regulations on rice storages.
– To have at least 01 milling or grinding establishments or rice and rice processing establishments compatible with the national technical standards on warehouses and grinding and processing establishments.
Warehouses, milling, and processing plants may be owned by the trader or rented by another organization or individual with a written lease with a minimum lease term of 5 years.
As can be seen, the new minimum reserve requirement for rice exports will create favorable conditions for traders to ensure timely supply of rice demand at specific times, medium to avoid affecting the socio-economic life and at the same time create favorable conditions for enterprises to export rice.